Google Ads Target CPA Breakeven Calculator

Validate smart-bidding goals by translating order value, gross margin, optional LTV uplift, and extra per-conversion costs into breakeven CPAs. The calculator exposes profit per conversion at your target bid, the equivalent CPC ceiling, the ROAS requirement, and the net margin percentage you keep after paying for traffic.

Revenue per conversion or first-year customer value in dollars.
Gross profit percentage after product cost and fulfillment.
Average conversion rate for the campaign or landing page.
Bid target per conversion in your Google Ads smart bidding strategy.
Optional — defaults to 1.00 when blank. Use it to factor in repeat purchase value beyond first order.
Optional — defaults to $0.00 when blank. Include fulfilment, success, or financing costs beyond cost of goods.

Advertising performance varies. Validate assumptions with live campaign data and consult your marketing analytics team before adjusting budgets.

Examples

  • Example 1 — $180.00 AOV, 45% margin, 2.8% conversion rate, $55.00 target CPA ⇒ Breakeven CPA: $81.00 | Profit per conversion at target: $26.00 | Max CPC at target: $1.54 | Required ROAS: 327.27% | Net margin after ads: 14.44%
  • Example 2 — $95.00 AOV, 38% margin, 4.2% conversion rate, $32.00 target CPA, 1.3× LTV, $6.00 other costs ⇒ Breakeven CPA: $45.99 | Profit per conversion at target: $13.99 | Max CPC at target: $1.34 | Required ROAS: 385.94% | Net margin after ads: 13.17%

FAQ

Should I use first-order value or lifetime value?

Use first-order value for campaigns judged on short payback windows. Apply the optional LTV multiplier when you can tolerate longer recovery periods.

How do refunds or cancellations factor in?

Reduce the gross margin percentage or LTV multiplier to reflect expected returns so the breakeven CPA stays conservative.

What if my conversion rate fluctuates by device?

Run separate scenarios for desktop, mobile, and tablet traffic using their respective conversion rates and CPAs to fine-tune bid adjustments.

Can I compare Target CPA and Target ROAS strategies?

Yes. Use the required ROAS output to see the equivalent ROAS threshold that matches your target CPA, then test both strategies around that breakpoint.

Where should I account for fulfillment or success costs?

Enter per-conversion expenses such as onboarding labor, financing fees, or success bonuses in the optional Other Variable Costs field so the breakeven CPA reflects true unit economics.

Additional Information

  • Breakeven CPA equals gross profit per conversion after applying any lifetime value uplift and other per-conversion costs.
  • Profit per conversion at target CPA shows surplus or deficit after ad spend.
  • Max CPC multiplies your target CPA by the conversion rate to reflect what smart bidding can afford per click.
  • Required ROAS compares conversion value to target CPA so you can align with ROAS bidding benchmarks.
  • Net margin after ads expresses profit per conversion as a percentage of revenue once ad spend and extra variable costs are deducted.

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